HomeMy WebLinkAbout05.d. Receive Pension Reform update associated with employees identified under the estoppel class Page 1 of 1
Item 5.d.
,orVIOIN SAN
March 9, 2021
TO: ADMINISTRATION COMMITTEE
FROM: TEJI O'MALLEY, HUMAN RESOURCES AND ORGANIZATIONAL
DEVELOPMENT MANAGER
REVIEWED BY: ROGER S. BAILEY, GENERAL MANAGER
SUBJECT: RECEIVE PENSION REFORM UPDATE ASSOCIATED WITH EMPLOYEES
IDENTIFIED UNDER THE ESTOPPEL CLASS
Contra Costa County Employees' Retirement Association (CCCERA) has been involved in lengthy
litigation regarding the pension reforms that were enacted in California in 2012 (Public Employees'
Pension Reform Act (PEPRA), Assembly Bill (AB) 340 and AB 197). In 2014, the trial court decision had
created a group of employees referred to as the "estoppel class" for whom the retirement benefit
calculation allowed for an additional 160 hours of leave to be included. The California Supreme Court
recently issued a decision (Alameda decision)which has stated that the trial court order be vacated and
the estoppel class was not lawful. The trial court will now have to enter a newjudgment, consistent with
Alameda, which will no longer allow estoppel benefits.
CCCERA is currently awaiting for the trial court to provide more clarity on the status of the estoppel class
and benefits. In the meantime, CCCERA has sent correspondence to District retirees that were eligible
for the estoppel class designation and informed them that their retirement benefit may be reduced and the
overpayment of the benefits from the time of retirement will need to be recovered with interest. The letter
was preemptive action taken by CCCERA to allow retirees to discontinue the estoppel benefits now,
instead of awaiting further clarification from the trial court to avoid accruing additional interest on the
overpayments.
Once the trial court has provided more clarification and/or CCCERA has taken any other actions, staff will
apprise the Board accordingly.
Strateguc Plan Tie-In
GOAL TWO: Environmental Stewardship
Strategy 1—Achieve 100% compliance in all regulations
March 9, 2021 Regular ADMIN Committee Meeting Agenda Packet- Page 37 of 44